BP and partners Total, Petrobras and Petrogal were yesterday named winning bidders for eight deepwater blocks offshore Brazil in the Brazilian National Petroleum Agency’s (ANP’s) 11th bid round. BP will be operator in two of the blocks.
The companies have committed to explore concession blocks FZA-M-57, FZA-M-59, FZA-M-86, FZA-M-88, FZA-M-125, and FAZ-M-127 in the Foz do Amazonas basin, BAR-M-346 in the Barreirinhas basin, and POT-M-764 in the Potiguar basin, for oil and gas resources, with the right to develop any commercial discoveries under the Brazilian concession regime.
BP will be operator with a 70% stake in block FZA-M-59, and in block BAR-M-346, with a 50% stake.
“BP is delighted with this result. It will increase our frontier exploration exposure along Brazil’s equatorial margin and plays to our strengths in deepwater. We look forward to a successful exploration programme working with our partners Total, Petrobras and Petrogal,” said Mike Daly, BP’s Executive Vice President of Exploration.
Today’s winning bids follow BP’s re-entry into the Brazilian upstream in 2011 with the purchase of interests in 10 blocks from Devon Energy and the subsequent farm-in to four Petrobras-operated deepwater blocks in the Brazilian equatorial margin in 2012.
“This is an exciting outcome for BP. It reaffirms our long-term partnership with Brazil, expanding our upstream portfolio to 22 E&P concessions in seven different basins, in addition to our biofuels, lubricants, aviation and marine fuel businesses,” added Guillermo Quintero, BP Brazil Regional President.
BP and its partners now expect to work with the ANP to finalise the awards. The signing of the contracts, in which BP will participate through its Brazilian subsidiary BP Energy do Brasil Ltda., is expected to take place in August 2013.
Table of the awarded blocks:
Foz do Amazonas basin - SFZA-AP1
|
Block |
Area (km2) |
Operator |
Partners |
|---|---|---|---|
|
FZA-M-59 |
766.0 |
BP (70%) |
Petrobras (30%) |
|
FZA-M-125 |
766.6 |
Total (40%) |
BP (30%) Petrobras (30%) |
|
FZA-M-127 |
766.6 |
Total (40%) |
BP (30%) Petrobras (30%) |
|
FZA-M-57 |
766.0 |
Total (40%) |
BP (30%) Petrobras (30%) |
|
FZA-M-86 |
766.3 |
Total (40%) |
BP (30%) Petrobras (30%) |
|
FZA-M-88 |
766.3 |
Total (40%) |
BP (30%) Petrobras (30%) |
Barreirinhas basin - SBAR-AP2
|
Block |
Area (km2) |
Operator |
Partners |
|---|---|---|---|
|
BAR-M-346 |
768.9 |
BP (50%) |
Total (50%) |
Potiguar basin -
|
Block |
Area (km2) |
Operator |
Partners |
|---|---|---|---|
|
POT-M-764 |
767.4 |
Petrobras (40%) |
BP (40%) Petrogal (20%) |
Notes to editors:
BP in Brazil
- BP has been present in Brazil since 1957 and currently operates four businesses in the country: exploration and production (BP Energy do Brasil); biofuels (BP Biocombustíveis); aviation fuel (Air BP); and lubricants (Castrol).
- BP Energy do Brasil currently has interests in 14 concessions in five Brazilian basins, not including the blocks awarded today.
- BP owns and operates three producing ethanol mills in Brazil, with a total crush capacity of 7.5 million tonnes per annum.
- Air BP operates in 18 airports across the country, providing aviation fuel to the commercial, military and general aviation.
- Castrol provides high quality lubricants to the automotive, industrial marine and energy sectors.
- Earlier this year BP and Brazilian group EBX signed an agreement to form a joint venture for the distribution of marine fuels in Brasil.
- BP Group companies are present in eleven Brazilian states (Bahia, Ceará, Espírito Santo, Goiás, Maranhão, Mato Grosso, Minas Gerais, Paraná, Pernambuco, Rio de Janeiro and São Paulo) and the Federal District.
